Jollibee Foods Corp. said it is acquiring a 70-percent stake in Taiwan wellness soup brand Moon Moon Food for NT$105.92 million ($31.78 million).
The acquisition will be done through Jollibee’s unit Milkshop International Co. Ltd., which signed the agreement to make a strategic investment into Moon Moon Food owner Tien Hsia Sheng Co. Ltd., covering 980,000 shares.
Jollibee said the “strategic move” will complement Milkshop’s Milksha tea business, also a Taiwanese brand.
Jollibee added the acquisition strengthens Milkshop’s position as a leader in Taiwan’s tea segment “by accretively integrating Moon Moon Food’s resources and complementary offerings to enhance its ability to meet evolving customer needs, further strengthening scale, valuation and expanding consumer base of Milksha.”
“Moon Moon Food is renowned as the ‘Leading Brand in Chinese Wellness Soups’, Moon Moon Food Food is a highly popular restaurant brand in Taiwan, recognized by the Michelin Bib Gourmand for seven consecutive years (2018 to present),” Jollibee told regulators.
Moon Moon Food has 13 outlets in Taiwan and has opened its first overseas branch in Singapore last year.
“Once the transaction is completed, Tien Hsia Sheng Co., Ltd. (Moon Moon Food) shall be consolidated into Milksha’s portfolio and financial reports,” Jollibee said, noting that the Moon Moon Food sale was valued using “multiples based valued anchored on 2023 net profit.
Jollibee said it will take on 51 percent of any acquisition impact to Milksha while Yung-Cheng Lai, Moon Moon Food founder and chief executive officer, will retain as 30 percent onwership in Tien Hsia Sheng.
Jollibee said payment is subject to completions of conditions covered by the share purchase agreement.
